Prime Minister Tan Sri Muhyiddin Yassin announced the extension of loan repayment moratorium by three months targeting those who have lost their jobs or had pay cuts this year due to the COVID-19 pandemic.
Individuals who lost their jobs in 2020 and still haven’t gotten a new job can enjoy the moratorium up until 31st December 2020.
For those who are employed but have had their wages cut, their monthly installments will be decreased in tandem with their pay cuts
After three months, the moratorium period could be extended by the respective banks according to each individual’s situation.
Back in April, Malaysia implemented a repayment moratorium, and became the first country to introduce a six-month moratorium.
The six-month moratorium ends on 30th September 2020.
The moratorium period is a duration a borrower is not obligated to make monthly debt repayments to the banks.
It was initiated to relieve the burden of those directly affected by the impact of the pandemic. It was also designed to keep cash within households, given the uncertainty at the start of the pandemic.
The loan moratorium was a feature from the first relief package during the movement control order by the government that saw business and consumer activity basically grind to a halt, except for essential services.
Other countries that have introduced various forms of moratorium include Singapore, Indonesia, the Philippines, Thailand, the United Kingdom, Canada, Italy, and the United States.
Remember, it is times like these where need we keep our heads above the water for the sake of ourselves, our loved ones and our community.
Keep calm and carry on the Malaysian spirit as high as you can! #StayHopefulWithIQI